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Manual of the Laws of Naval War. Oxford, 9 August 1913.
Section IV : On the rights and duties of the belligerent with regard to enemy property - Art. 51.
Art. 51. Enemy character. The enemy or neutral character of a vessel is determined by the flag which it is entitled to fly.
The enemy or neutral character of goods found on board an enemy vessel is determined by the enemy or the neutral character of the owner.
Each State must declare, not later than the outbreak of hostilities, whether the enemy or neutral character of the owner of the goods is determined by his place of residence or his nationality.
Enemy goods found on board an enemy ship retain their enemy character until they reach their destination, notwithstanding any transfer effected after the outbreak of hostilities while the goods are being forwarded.
If, however, prior to the capture, a former neutral owner exercises, on the bankruptcy of an existing enemy owner, a recognized legal right to recover the goods, they regain their neutral character.